What are the future challenges of the German food industry?

By Brunella Brunetti

The German economy is worldwide known for its stability, competitiveness and economic growth. Furthermore, the economy is characterized by a high nominal GDP and is considered to be the largest national economy in Europe. Germany’s largest industries are Automotive Industry, Mechanical engineering, the Medical industry and the German food industry and beverage industry.

The German food & beverage industry

The German food and beverage industry is the fourth-largest industrial sector in Germany. Many of the companies operating within this industry are small to medium-sized companies, which are mostly family owned. For this reason, companies active in this industry, are not only focused on one specific German region but are rather spread and found throughout the country. Furthermore, plenty of German food and beverage products are known worldwide, making this industry rely heavily on exports. The yearly turnover of the German food and beverage industry is around 180 billion euros, with an increasing market.

Changes in the Food and Beverage Industry

Although this industry seems to be quiet resistant to changes, the German food industry is about to face some major changes. Consumers in Germany started to shift to newer trends, making it necessary for companies in this sector, to adapt. Furthermore, through the so-called digitization in Germany and in the German food and beverage industry, it is possible to stay internationally competitive, by having faster processes that face the rising demand and competitive pressure. However, adapting to newer technology can be difficult for many companies, as it is not always feasible to implement them in a fast manner. The reason for it, are mostly problems that occur in decision making, due to the hierarchical structure of the companies. Lastly, through the uncertainty of the Brexit result, German exports to the United Kingdom could be affected.

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